August 7, 2011
Standard & Poor’s credit-rating downgrade of the U.S. has sent shockwaves across America, with the worst to come possibly Monday morning when the markets open. But what might happen in the future as things stand now?
On Fox News Channel Saturday, S&P Sovereign Ratings Committee Managing Director John Chambers explained the rating agency’s decision and what factors played a role.
“[T]he rating was motivated by a number of factors,” Chambers said. “One was the political gridlock in Washington, which makes us think it is going to be difficult for elected officials to put the fiscal profile of the U.S. government on a long-term sustainable path. And part of it was because of the fiscal path itself — debt-to-GDP at the all-in level, the states and local governments and federal governments in that of liquid assets is about 75 percent of GDP. And that’s going to trend up. That’s going to trend up over the next decade unless we get additional fiscal measures than what we got on the table now.”
This article was posted: Sunday, August 7, 2011 at 9:35 am